To make sure your interest stays jacked up, I limit my comments to actual trades.
I like to accompany these pearls with a chart.
Dollar Index: UDN = DOWN, UUP = UP
The dollar index is actual a struggle between the U.S. Dollar and a weighted basket of select global currencies.
When the price rises it means the U.S. dollar is stronger than the basket. When it declines, the opposite.
Since we use proxies in the stock market so that you can use this strategy in any type of account, UDN represents the price declining. Therefore the basket of currencies is rising against the U.S. Dollar.
Let’s take a look at the chart…
As you can see the 21 EMA (blue) is above the 55 EMA (green), this our quick and dirty definition of trend which in this case is up.
Set up is for a long trade, the trigger, the 8 EMA (red) or the price itself has closed above the blue line.
We could have gone ahead with the trade, but we had resistance just above at the black horizontal line. I needed a CLOSE above that line to act. Even though it was a down candle, the close was still just above the black line. Our next step is to put a stop-buy just above the high of the candle that did the closing. Our trade is at $20.67. If the price goes above that price we will be triggered in to the trade.
Should that excitement occur, the details of the trade and risk management will be recorded here.
Any questions, etc, please drop me a line: firstname.lastname@example.org.